1202-1204

Sections 1202 to 1204 of the Internal Revenue Code provide specific tax incentives for investments in certain small businesses. Section 1202 allows investors to potentially exclude up to 100% of the gain from the sale of qualified small business stock held for more than five years, encouraging investment in emerging companies. Sections 1203 and 1204 deal with regulations on stock transactions, emphasizing the importance of proper reporting and compliance to qualify for these benefits. Together, these provisions aim to stimulate economic growth by promoting investment in small, innovative businesses.